U.S. stocks were rising as strong bank earnings lift Wall Street
Investing.com — U.S. stocks were rising after three big banks reported strong second quarter profits.
At 10:59 ET (14:59 GMT), the Dow Jones Industrial Average rose 101 points or 0.3%, while the S&P 500 rose 0.1% and the NASDAQ Composite rose 0.2%.
JPMorgan Chase & Company (NYSE:JPM) shares rose 0.5% after it said profit rose 67% on a boost from lending as interest rates rose. Wells Fargo & Company (NYSE:WFC) also rose 0.6% after notching a 57% gain in profit. Citigroup Inc. (NYSE:C) reported better-than-expected profit after a strong showing in personal banking and wealth management. Shares were down 2.1%.
Among other earnings on Friday, UnitedHealth Group Incorporated (NYSE:UNH) rose 6.4% after beating profit estimates and saying expenses were lower than forecast.
Earnings for the stocks that make up the S&P 500 are expected to fall 6.4% in the second quarter, according to Refinitiv.
Strong earnings could help lift stocks after a rally that has the Nasdaq poised to mark its best week since the middle of March. Both the Nasdaq and S&P hit 52-week highs this week after inflation data signaled prices are cooling faster than anticipated.
This week’s reports on consumer and producer prices in June are giving investors hope that the Federal Reserve could wind up its interest rate increases sooner rather than later, though the central bank is still expected to raise another quarter of a percentage point this month.
The University of Michigan’s consumer sentiment reading for July was 72.6, far stronger than analyst expectations and confirming a trend that consumers are feeling better about the economy.
Fed officials have said in recent weeks they do see more rate increases this year, however. On Thursday, Fed Gov. Christopher
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